Two of the original founders of Donald Trump’s Truth Social platform have divested their shares amid an ongoing dispute with the former president.
According to regulatory disclosure published By Trump Media & Technology Group (TMTG) On Thursday, an investment vehicle controlled by Andrew Letinsky and Wesley Moss liquidated the bulk of its 7.53 million shares currently worth about $100 million based on the stock’s last closing price.
“As of the date of this filing, United Atlantic Ventures LLC owns 100 shares,” the statement read.
Letinsky and Moss serve in no official capacity with the company, neither as officers nor as directors. From a regulatory perspective, they are not considered insiders, but rather passive investors who are not privy to material non-public information. Therefore, their sold inventory should not be taken as a sign of problems that outsiders are not already aware of.
The pair first met Trump as contestants on the second season of Trump’s reality TV show trainee, Which aired 20 years ago. After Trump was banned from Twitter for inciting the Capitol riot on January 6, they convinced the former president to found his own social media platform and agreed to give him a majority stake.
When Trump Media Group went public in late March – trading under Trump’s initials as its symbol – Drones owned 5.5% of the listed company.
But shortly thereafter, relations between the two parties became strained. Letinsky and Moss went on to file a lawsuit against the company, and they felt like they had Briefwhile TMTG opposed a lawsuit claiming that it erred in launching the Truth Social app.
According to the filing, UAV’s stake had dwindled to less than 3.8% of outstanding shares by mid-August amid further stock issues that diluted its holding.
Stock accumulation concerns
The drones did not reveal exactly when the sale took place and whether it took place over more than one trading session. However, 13G disclosures such as these made by passive shareholders with significant stakes typically give some leeway, with a request required to be filed within five business days of the transaction.
But the drones were subject to a lock-in period preventing any sale before September 19. This puts it in a potential price range of $12 to $15 per share.
While major stakeholders divesting their investments is not usually a confidence builder, the market was well aware of the ongoing dispute between Letinsky, Moss and the company. Earlier this month, UAV won a lawsuit demanding that Odyssey Transfer and Trust, the custodian of the shares held in escrow, release its 7.53 million shares once the lockup period ended last Thursday.
With Litinsky and Moss withdrawing their money, some of the uncertainty hanging over the company should be removed as the market has fully absorbed their shares.
While the future of TMTG remains a concern, the biggest immediate fear for investors was the potential sale of shares by the former president, who owns approximately 115 million shares representing about 57% of the company.
Despite recent assurances by the former president that he has no intention of selling, TMTG shares collapsed to all-time lows on Tuesday amid suspicions that Trump’s mounting legal costs mean he may yet have to convert part of his stake into cash.
So far there has been no evidence that he has. Instead, Trump has resorted to lending his personal name to a wide range of branded merchandise that he sells, ranging from sneakers to Bibles and silver coins. On Thursday, he revealed his latest products, which are diamond-encrusted wristwatches that are sold at a price of up to $100,000 per watch.
TMTG did not respond to a request from luck To comment.
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